Cash for Clunkers
The Congressional Democrats and Obama administration's efforts to favor UAW workers and New Car buyers (typically households with $60,000 plus in income) with subsidies from the United States Treasury, has been an unmitigated disaster for working families, and the poor. As a result of the federal spending program, working families and the poor now are faced with an average price increase of 10.3% for Used Cars.
The government program mandated trade-ins be crushed, leading to a shortage of used vehicles and an increase in prices. This has occurred at a time when deflation, or an overall drop in prices giving consumers more money to spend, has characterized the current economic environment.